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E1: 07: Interim Workbench (P07210I) Calculates Federal Tax on Supplemental Pay for Employee with Tax Method I (No Federal Tax) (Doc ID 2993352.1)

Last updated on DECEMBER 15, 2023

Applies to:

JD Edwards EnterpriseOne US Payroll - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

Interim Employee Workbench (P07210I) calculates Federal A Tax withholding on Supplemental Pay for an Employee with Tax Method I (No Federal Tax).

If an Employee is setup Tax Method I (No Federal Tax) in National/Fiscal Data, Interim Employee Workbench (P07210I) should not calculate Federal A Tax withholding on a Supplemental Pay (Bonus) Amount granted to that employee.

Steps to Duplicate:

Note: All the data below is from Oracle Demo Data. No Customer or Personal Data is displayed. 
  1. On an employee that works and resides in Colorado (5) set employee Tax Method to I (No Federal Tax) on the National/Fiscal Data page.
  2. On Employee Tax Overrides Screen set Federal A with Additional Federal Withholding = 0%.
  3. Run Interim Payment Workbench to calculate Regular Pay (Pay Type 1)
    1. Pay Stub Detail shows Zero Dollars Federal A Withholding taken in Current Period for Regular Pay Type 1
    2. Tax Detail also shows Zero Dollars Federal A Withholding taken in Current Period
  4. On Pay Type 1 (Regular Pay) DBA set Auto Pay Method to Y ($ part of EEs Base Pay)
  5. Run Interim Payment Workbench to calculate Bonus Pay (Pay Type 515) of 10,000.00
    1. Pay Stub Detail shows Pay Type 515 (Bonus/Supplemental) pay of 10,000,00 for this same employee is having Federal Withholding of 2,200,00 taken out, when it should be exempt from federal taxes.
    2. Tax Detail also shows 2,200 Dollars Federal A Withholding taken in Current Period for the 10,000.00 Bonus when it should be zero.

Employee Tax Method = I (No Federal Tax Withheld)

Regular Pay has Zero Federal Tax Withheld As Expected

Federal Income Tax is being incorrectly withheld from Bonus (Supplemental) Pay

 

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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